002093.SZ WACC - Weighted Average Cost of Capital
The WACC of Guomai Technologies Inc (002093.SZ) is 8.9%.
| Range | Selected | |
| Cost of equity | 10.9% - 16.2% | 13.55% |
| Tax rate | 12.9% - 16.7% | 14.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.6% - 10.2% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.34 | 1.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.9% | 16.2% |
| Tax rate | 12.9% | 16.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.6% | 10.2% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 002093.SZ | Guomai Technologies Inc | 0.95 | 1.45 | 0.81 |
| 002184.SZ | Shanghai Hi-Tech Control System Co Ltd | 0.27 | 0.32 | 0.26 |
| 002331.SZ | Anhui Wantong Technology Co Ltd | 0.09 | 0.95 | 0.89 |
| 002474.SZ | Fujian Rongji Software Co Ltd | 0.15 | 1.52 | 1.34 |
| 1075.HK | Capinfo Company Ltd | 0.05 | 0.73 | 0.7 |
| 300020.SZ | Enjoyor Co Ltd | 0.63 | 1.11 | 0.73 |
| 300287.SZ | Beijing Philisense Technology Co Ltd | 0.01 | 1.07 | 1.06 |
| 300330.SZ | Shanghai Huahong Jitong Smart System Co Ltd | 0.04 | 0.22 | 0.22 |
| 300468.SZ | Shenzhen Forms Syntron Information Co Ltd | 0 | 1.32 | 1.32 |
| 300634.SZ | Richinfo Technology Co Ltd | 0.01 | 1.7 | 1.68 |
| 300925.SZ | Shenzhen Farben Information Technology Co Ltd | 0.03 | 2 | 1.94 |
| Low | High | |
| Unlevered beta | 0.81 | 1.06 |
| Relevered beta | 1.51 | 2.13 |
| Adjusted relevered beta | 1.34 | 1.76 |
002093.SZ's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for 002093.SZ:
cost_of_equity (13.55%) = risk_free_rate (2.95%) + equity_risk_premium (6.60%) * adjusted_beta (1.34) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.